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Why is the ultra-low latency so important for online traders?

Electronic trading leads the demand for low-latency connectivity because time is the ultimate factor in success. Electronic communications network (ECN) connectivity between exchanges, hosting centers, and high-frequency trading facilities delivers raw exchange feeds and transaction information to enable traders to grasp opportunities only available for fractions of a second. The classic saying “time is money” holds particular truth in today’s economy, and low latency has become a key factor in building a better bottom line.

That’s why latency is perhaps the most important and often overlooked factor for the online trader. It may sound like a complicated computer term, but understanding what it is can quickly increase the trader’s earnings.

What is Latency? Latency is the time required for data to travel from the source to destination network. It is measured in milliseconds.

Also, you can view the latency as the time it takes to learn about an event (e.g., a change in the bid), generate a response, and have the exchange act on the response.

In reality, a price quote must travel from the broker’s server to the trader’s VPS to be processed and then the data must travel the same distance back to the broker’s server to enter or adjust an order. Since the market is quite volatile and will continue to move while price quotes are travelling, the trader with the lower latency VPS will always have a more real-time reading of the market .

To illustrate this greatest advantage, you can see the chart below. It shows the latency to popular brokers and services from our Forex VPS servers located in Sofia and Frankfurt.

Forex BrokerBG Latency (ms)DE Latency (ms)UK Latency (ms)
InstaForex 19 1 15
TradeFort 28 1 7
TradersWay 28 1 5
Admiral Markets 37 1 6
direktbroker.de 31 1 7
gaincapital.com 31 1 7
flatex.de 35 1 11
hanseatic-brokerhouse.de 35 1 12
ACFX 29 1 14
agmmarkets.com 27 1 6
varengoldbankfx.com 35 1 9
IronFX 37 1 12
youtradeFX 34 1 16
Markets.com 42 1 4
Sunbird FX 41 1 10
fxnetaffiliates.com (FXTM) 43 1 9
Finexo 22 1 5
Forex Metal 47 2 9
MigBank ( SWISSQUOTE ) 27 3 9
ProfiForex 27 3 9
FX Choice 49 4 12
AFXCapital 19 5 5
EXNESS 22 5 2
GCI Trading 24 5 1
Invast 27 5 1
E-global ( Forex 4 you ) 27 5 1
UPFX 41 5 3
I am FX 34 6 2
JFD Brokers 36 6 1
FBS 37 6 3
IamFX 34 6 2
GKFX 36 7 1
XM 37 7 1
TradingPoint 37 7 1
Robo Forex 36 7 1
FxPrimus 37 7 1
Go Markets 36 8 1
FIBO Group 38 8 1
Core Liquidity 39 8 1
Ava FX 39 8 2
Forex FS 33 8 1
Graalia 36 8 1
Tallinex 36 8 1
ActiveTrades 38 1 1
LMAX Excahnge 33 8 1
Sensus capital 33 8 1
FX Solutions UK (Renamed to CITYINDEX) 42 8 1
ThinkForex 26 9 1
Axiory 37 9 2
Vantage FX 39 9 1
SGT Markets STERLING GENT 45 9 3
amanacapital.com 27 9 3
SkyFX 33 9 1
One Financial Services 32 9 9
HY Markets 39 9 2
ACM 44 9 16
Hantec fx 37 9 1
Benchmark 33 9 1
FxPro 45 9 1
FxGrow 39 9 2
HotForex 31 11 1
Synergy Fx 43 12 1
IBFX 33 13 1
OctaFX 36 15 24
intertrader 39 18 12
X-Trade Broker (XTB) 22 18 27
InvestorEurope 63 23 25
Renesource Capital 37 29 38
Caesar Trade 82 48 44
FXPIG 83 48 48
Windsor Brokers 48 49 59
DirectFX 65 49 49
Halifax G-Trader 87 50 44
fxflat.com 63 53 57
Finotec 72 55 59
OANDA 79 55 55
FxOpen 78 55 55
Forex Nation (Key to markets) 68 56 58
Global Prime 84 56 58
FinFx 74 57 49
Advanced Markets FX 86 57 54
Nord FX 87 57 54
ATC 96 57 58
FXCH 69 59 55
Global Clearing Group 89 59 56
easy-forex 77 61 53
FXDD 79 62 65
AAAFx 92 62 48
MasterForex 69 65 66
FX Clearing 84 69 71
StrategyBuilderFX 79 72 65
Forex.com 89 76 69
FXCM 79 77 79
Actior.de 79 77 79
FXCC 89 78 69
ICM 117 91 101
Forex LTD 99 97 99
Papperstone 135 131 129
Lite Forex 198 135 154
IKO FX 246 281 209


Q: I already have a virtual desktop. Can I migrate my desktop to the new data center?

A: You can migrate your VPS between NextPointHost datacenters at any time. Please open a support ticket.


Q: How can I figure out the latency I am getting to my broker right now?

A: This can be done from inside the VPS (or from your PC if you want to measure latency from your PC).

Click start->run

Type "cmd" in the box and click ok. This will open a command prompt.

Lookup the broker's IP address in the latency chart.
For example, IBFX is 66.114.118.12. Type: ping 66.114.118.12






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